Authorized Economic Operator (AEO) Certificate

Benefits of AEO Certification

 

The AEO (Authorized economic Operator) programme, the importer and exporter are being issued a certificate based on three-tier certification i.e. AEO T1, AEO T2 and AEO T3, where AEO T3 is the highest level of accreditation and with most benefits. All three tiers provide for varying and incrementally increasing level of facilitation to the status holder. There is one more category of AEO- LO that covers all other entities in the supply chain other than the importers and exporters.

Recently, the AEO T1 processing was rationalized via new circular 26/2018 - customs. The latest circular has cut down on the Annexure required for AEO T1 certification from earlier 7 to the now 2. In the present the setup, the AEO T1 file can be approved at the Customs Zonal level. This has completely eliminated the time that was wasted in transit of application from zonal offices to DIC (AEO HQ).

The AEO Programme enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians/terminal operators, custom brokers and warehouse operators.

 

Benefits of AEO certification

Priority in processing and clearance of goods.

Inclusion of Direct Port Delivery of imports for AEOs.

Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs.

Self-declaration of SION under Para 4.07A of FTP 2015-20 for AEO Exporters in cases where SION is not notified.

Provision of Deferred Payment of duties – delinking duty payment and Customs clearance for AEO T2 and AEO T3

Fast tracking of adjudications and refunds including IGST refunds and disbursal of drawback.

Benefits of Mutual Recognition Agreements with other Customs Administrations for AEO T2 and AEO T3.

 

AEO-T1 status holder are eligible for 24/7 cargo clearance, exemption from payment of merchant overtime fee, separate earmarked space in custodian’s premises, and facility of Direct Port Delivery (DPD) for import and export consignments. Further, T2 and T3 AEO holders are eligible for additional benefits such as facility for deferred payment of customs duty, facility to paste MRP stickers in their premises, timely grant of refund/rebate of indirect taxes, exemption from submission of bank guarantee and many more.

 

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